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SALES PROMOTIONAL ACTIVITIES
Promotion is true that products are manufactured to satisfy the needs of the
consumers.. But alone is not enough. Today the responsibility of the manufacturers
does not cease with physical production whatever may be the nature of the product.The present day marketers are consumer oriented where it is the duty of the
manufacturers to know from where, when, how and what price the products would be
available. Successful marketing consists in offering the right product of the right price
of the right place (and time) with right promotion.
In course of time, various activities came into vogue designed particularly to help
easy sale of goods. These activities commonly known as promotional Mix. The
marketing communication Mix also called as the Promotion Mix consists of four
major tools.
1. Advertising.
2. Sales Promotion
3. Publicity
4. Personal Selling
MARKETING COMMUNICATION PROCESS:
Generally marketing communication is undertaken to pass on the message of a
product or sale to the ultimate consumers. Thus, there are three elements in this
process.
IMPORTANCE OF ADVERTISING:
The purpose of advertising is motivating but to sell something a product, a
service or an AIRTEL. The real objective of advertising is effective communication
between producers and consumers. In other words the ultimate purpose all advertising
is Increased awareness list of the following specific objectives of advertising.
To make on immediate AIRTEL
To build primary demand
To introduce a price deal
To inform about a products availability1
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To increase market share
To help salesman by building on awareness of a product among retailers
To increase the frequency use of a product.
To build overall company image
To build brand recognition
OBJECTIVES OF THE STUDY
To know the customer opinion about tariff rates of Airtel.
To know the brand loyalty of Airtel.
To know the influencing factors of Airtel.
To know the market share of the Airtel.
To know the sources of awareness for the customers.
To know the customer satisfaction on network of Airtel.
To know the satisfaction on Services Provided by Airtel.2
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To know the satisfaction of customers on Recharge and Top up cards when
compare to other competitors.
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RESEARCH METHODOLOGY
One of the important tools for conducting marketing researching is the
availability of necessary and useful data. Data collection is more of an than science
the methods of marketing research are in a way the methods of data collection. The
sources of information fall under two categories.
Internal sources:
Every company has to keep certain records such as accounts, records,
reports, etc., these records provide sample information which can organizations
usually keeps collecting in its working.
External sources:
When internal records are insufficient and required information is not
available, the organizations will have to depend on external sources. The external
sources of data are:
Primary data:
Primary data are data gathered for a specific purpose or for a specific
research report.
For systematically collecting the data the closed end questionnaire is used.
The questionnaire consists of questions relating to various aspects of the study for
proper data collection the questionnaire is divided into 2 sections. Both the sections
are meant for the respondent only.
Secondary data:
Secondary data are data that are collected for another purpose and already
exist somewhere. Data pertaining to company is collected from company web site
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company catalogues and magazines. The company profile gives a detailed report of
history various products manufacture by its etc.
METHOD OF RESEARCH
SURVEY METHOD:
A survey is a complete operation, which requires some technical knowledge
survey methods are mostly personal in character. Surveys are best suited forgetting
primary data. The researcher obtains information from the respondents by
interviewing them.
SAMPLING:
It is not always necessary to collect data from whole universe. A small
representative sample may serve the purpose. A sample means a small group
should be emanative cross section and really representative in character. This
selection process is called sampling.
SAMPLE SIZE:
Samples are devices for learning about large masses by observing a few
individuals. The selected sample is 25.
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Sampling plan:
1.SAMPLING UNIT -The business people, professionals are survived
2. SAMPLING PROCEDURE - Stratified random sampling method is chosen.
The data collected from both the primary and secondary sources is tabulated
and presented in a systematic from prior to classification and interpretation.
METHOD OF SAMPLING
RANDOM SAMPLING METHOD
The method adopted here is random sampling method. A random sample is
one where each item in the universe has as equal chance of known opportunity of
being selected.
RESEARCH INSTRUMENT
QUESTIONNAIRE:
A Questionnaire is carefully completed logical sequence of question directed
to a define objective. It is the out line of what information is required and the
framework on which the data is built upon. Questionnaire is son commonly used in
securing market information that its preparation deserves utmost skill and care.
FORMS OF QUESTIONS
OPEN ENDED QUESTIONS:
They are descriptive in nature. Respondents are allowed to answer in their
own words. Such questions buying the actual opinion of the respondent r
Regarding a product.
CLOSED ENDED QUESTIONS:
They are not descriptive in nature. They will be given certain choices and
the respondents have to choose choice among them. They make analysis easy but
sometimes they restrict the respondents choices.
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TYPES OF CLOSED ENDED QUESTIONS:
DICHOTAMS: a question offering two answers choice.
MULTIPLE CHOICE: a question offering three choices.
RATING SCALE: a scale that rates some attributes from poor to
excellent.
LIMITATIONS
1. Time is the main limitation for the study, as project was restricted only for
45 days.
2. The methods used in this project are random sampling methods and results
obtained may not be accurately fully accurate and believable.
3. The research has been centered to only Two hundred Customers of Airtel,
rather than innumerable Customers dealing with different products of
different brands across the globe.
4. The analysis is purely based on closed ended questions and due their
deliberate manipulation, important information may be lost and even
barriers of communication would cause a limitation.
5. The whole project research was confined to only customers of Airtel
6. The research was done with the help of employees of the organization for
some of the dealers and their barriers of communication or way to represent
the topic would differ and actual information would be lost.
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7. The dealers responded during the survey were possessing primary education
and their views would not be able to provide the required information.
CHAPTER-II
Company profile
INTRODUCTION
"As we spread wings to expand our capabilities and explore new horizons, the
fundamental focus remains unchanged: seek out the best technology in the world
and put it at the service of our ultimate user: our customer."
Sunil Bharti Mittal (Group Chairman and Managing Director)
Bharti Enterprises has been at the forefront of technology and has
revolutionised telecommunications with its world-class products and
services.
Established in 1985, Bharti has been a pioneering force in the telecom sector 8
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with many firsts and innovations to its credit, ranging from being the first
mobile service in Delhi, first private basic telephone service provider in the
country, first Indian company to provide comprehensive telecom services
outside India in Seychelles and first private sector service provider to launch
National Long Distance Services in India. As of October 31, 2004, Bharti had
approximately 9.83 million total customers nearly 9.06 million mobile and
776,000 fixed line customers.
Its services sector businesses include mobile operations in Andhra Pradesh,
Chennai, Delhi, Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala,
Kolkata, Madhya Pradesh circle, Maharashtra circle, Mumbai, Punjab,
Rajasthan, Tamil Nadu, Uttar Pradesh (East) circle, Uttar Pradesh (West)
circle and Jammu & Kashmir. In addition, it also has a fixed-line operations
in the states of Madhya Pradesh and Chattisgarh, Haryana, Delhi, Karnataka
and Tamil Nadu and nationwide broadband and long distance networks.
Bharti has recently launched national long distance services by offering data
transmission services and voice transmission services for calls originating and
terminating on most of India's mobile networks.
The Company is also implementing a submarine cable project connecting
Chennai-Singapore for providing international bandwidth.
Bharti Enterprises also manufactures and exports telephone terminals and
cordless phones. Apart from being the largest manufacturer of telephone
instruments, it is also the first telecom company to export its products to the
USA.
1.Group overview
2. Group structure
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Introduction
Bharti Teletech, the manufacturing arm of Bharti Enterprises, with an installed
capacity of 5 million telephone sets per annum, is India's leading manufacturer of
high quality telephones. Today Bharti Teletech is the major PTT supplier in South
Asia. It has ISO 9002 accreditation and also an OEM for Sprint Corporation and
Siemens. It's range of products marketed under the brand name Beetel constitute a
30% market share in India thereby making it the market leader in the domestic
market.
Services
Accomplishments
Connecting India - Growing Presence
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1999Pre-4th
Licence
Post-4th
Licence
Number of Mobile Circles 2 5 19
Number of Fixed-Line Circles 1 1 6Population covered in our licensed area
(%)2% 16% 58%
Area covered in our licensed areas (%) 2% 16% 56%
Wireless Coverage Area (% of Mobile
Customers covered)16% 38% 96%
The largest private sector integrated telecommunications services
group in India in terms of the number of customers.
Largest Mobile footprint in India, covering 18 of the 23 licensed
areas.
Proven track record of managing growth - both organic as well as by
way of acquisitions.
First and largest private telecommunications services company
offering fixed-line services in India.
Existing foreign shareholders have acquired direct and indirect equity
interests in the Company for a total consideration exceeding US$1billion. 11
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First private telecommunications company to launch long distance
services.
First off the block to launch fixed-line services in all the four circles
of Delhi, Haryana, Karnataka and Tamil Nadu.
Bharti Tele-Ventures, its subsidiaries and management have received several
awards and recognitions, including:
Bharti was recognized as one of the "Leading Lights of Telecom" in
Asia in November 2001 in the Asian edition of the "tele.com"
magazine with analytical inputs from research consultants Frost &
Sullivan.
The leading telecommunications service provider in India in a survey
of Indian companies conducted by Business World in association with
Indian Marketing Research Bureau in September 2001;
The Techies award from Information Communications World, an
international business magazine, for four consecutive years (1997 to
2000) for brand excellence, network quality, customer service and
value added service in our Delhi mobile circle;
Golden Peacock National Training Award 1999 to Bharti Cellular
for our Delhi mobile operations from the Institute of Directors, a non-
profit association in India committed to improving the
competitiveness of Indian business by focusing on development of
business leaders, for the best human resources and training practices.
Ascent Times of India and Sodexho Pass award in 1999 from the
Asia Pacific HRD conclave to Bharti Cellular for corporate excellencein the category of most innovative human resource practices. 12
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Mr. Sunil Bharti Mittal (Chairman and Group Managing Director)
was honored as " One of the Top Entrepreneurs Worldwide" for the
year 2000 and "Stars of Asia" for the year 2001 by internationalbusiness magazine, Business Week.
Mr. Sunil Bharti Mittal was selected as the "Businessman of the year
2002" by Business India.
Mr. Sunil Bharti Mittal was awarded the Dataquest IT man of the
year 2002.
Mr. Sunil Bharti Mittal was selected the "CEO of the year 2002" by
World HRD congress.
Mr. Akhil Gupta (Joint Managing Director) was adjudged as the Chief
Financial Officer for year 2001 for Mergers & Acquisitions activitiesby EIU.
CORPORATE STRUCTURE
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Management Structure
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The group has been structured to create functional and operational specialisation with
a linear vision of business lines and functional areas.
The Company is headed by Chairman and Group Managing Director- Sunil Bharti
Mittal who is assisted by two Joint Managing Directors- Akhil Gupta and Rajan
Bharti Mittal. The Company also has two Presidents- President Mobile Services and
President Infotel Services, this responsibility includes Fixed-line, Long Distance and
Broadband Services. The Presidents report to the Group Chairman and Managing
Director. The head of units and SBUs report to the respective business's President.
An apex team of Corporate Directors has been constituted. The corporate directors
have supervisory and strategic responsibilities for functional areas across business
lines. The directors oversee functional areas including Business Development,
Human Resources, Marketing, Corporate Communication, IT & Technology,
Finance, Legal, Corporate Affairs, Corporate Strategy & Planning and Supervisory
Director cum Chief Mentor - mobility.
The organisation structure is designed to ensure that identical businesses are run15
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along similar lines and best resources in any functional field, be tapped to serve the
best interests of the entire group.
The structure also defines the role of the Head of the units who are totally
empowered to manage their respective companies and are fully responsible for
business operations to build world-class organizations with a high degree of customer
focus.
BOARD OF DIRECTORS
MR. SUNIL BHARTI MITTAL
MR. RAKESH BHARTI MITTAL
MR. RAJAN BHARTI MITTAL
BOARD OF DIRECTORS
MR. AKHIL GUPTA
MR. LUNG CHIEN PING
MR. LIM TOON
MS. CHUA SOCK KOONG
MR. DALIP PATHAK
MR. BASHIR ABDULLA CURRIMJEE
MR. DONALD CAMERON
MR. N. KUMAR
MR. PULAK PRASADMR. PAUL O'SULLIVAN
PROF. V.S RAJU
MR. KURT HELLSTROM
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http://www.bhartiteleventures.com/bhartienterprises/#Sunil%20Bharti%20Mittalhttp://www.bhartiteleventures.com/bhartienterprises/#Rakesh%20Bharti%20Mittalhttp://www.bhartiteleventures.com/bhartienterprises/#Rajan%20Bharti%20Mittalhttp://www.bhartiteleventures.com/bhartienterprises/#Akhil%20Guptahttp://www.bhartiteleventures.com/bhartienterprises/#Mr.Lung%20Chien%20Pinghttp://www.bhartiteleventures.com/bhartienterprises/#Lim%20Toonhttp://www.bhartiteleventures.com/bhartienterprises/#Chua%20Sock%20Koonghttp://www.bhartiteleventures.com/bhartienterprises/#Dalip%20Pathakhttp://www.bhartiteleventures.com/bhartienterprises/#Bashir%20Abdulla%20Currimjeehttp://www.bhartiteleventures.com/bhartienterprises/#Donald%20Cameronhttp://www.bhartiteleventures.com/bhartienterprises/#N%20Kumarhttp://www.bhartiteleventures.com/bhartienterprises/#Pulak%20Prasadhttp://www.bhartiteleventures.com/bhartienterprises/#Mr%20Paul%20O'Sullivanhttp://www.bhartiteleventures.com/bhartienterprises/#Prof.%20V.S%20Rajuhttp://www.bhartiteleventures.com/bhartienterprises/#Prof.%20V.S%20Rajuhttp://www.bhartiteleventures.com/bhartienterprises/#Mr.%20Kurt%20Hellstromhttp://www.bhartiteleventures.com/bhartienterprises/#Sunil%20Bharti%20Mittalhttp://www.bhartiteleventures.com/bhartienterprises/#Rakesh%20Bharti%20Mittalhttp://www.bhartiteleventures.com/bhartienterprises/#Rajan%20Bharti%20Mittalhttp://www.bhartiteleventures.com/bhartienterprises/#Akhil%20Guptahttp://www.bhartiteleventures.com/bhartienterprises/#Mr.Lung%20Chien%20Pinghttp://www.bhartiteleventures.com/bhartienterprises/#Lim%20Toonhttp://www.bhartiteleventures.com/bhartienterprises/#Chua%20Sock%20Koonghttp://www.bhartiteleventures.com/bhartienterprises/#Dalip%20Pathakhttp://www.bhartiteleventures.com/bhartienterprises/#Bashir%20Abdulla%20Currimjeehttp://www.bhartiteleventures.com/bhartienterprises/#Donald%20Cameronhttp://www.bhartiteleventures.com/bhartienterprises/#N%20Kumarhttp://www.bhartiteleventures.com/bhartienterprises/#Pulak%20Prasadhttp://www.bhartiteleventures.com/bhartienterprises/#Mr%20Paul%20O'Sullivanhttp://www.bhartiteleventures.com/bhartienterprises/#Prof.%20V.S%20Rajuhttp://www.bhartiteleventures.com/bhartienterprises/#Prof.%20V.S%20Rajuhttp://www.bhartiteleventures.com/bhartienterprises/#Mr.%20Kurt%20Hellstrom7/29/2019 a study on AIRTEL ADVERTISING & SALES PRAMOTION.doc
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Mobile Division
Overview
Bharti Tele-Ventures vision for its mobile business is To make mobile
communications a way of life and be the customers first choice.
The mission is to meet the mobile communication needs of the customer through 1)
error free service 2) Innovative products and services and 3) cost efficiency. The
Companys strategic objective is to consolidate its leadership position amongst the
mobile service providers in India.
The Indian mobile market, according to the COAI, has increased from approximately
1.2 million subscribers as of March 31, 1999 to approximately 34.77 million
subscribers as of October 31, 2004.
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Despite this rapid growth, the mobile penetration rate in India, at approximately 3.4%
as of October 31, 2004, is significantly lower than the average mobile penetration rate
in other Asian and international markets.
The number of mobile subscribers in India is expected to show rapid growth over the
next four years. By 2006 it is projected at 50 million by COAI and 44 million by
Gartner.
Bharti Tele-Ventures believes that the demand for mobile services in India will
continue to grow rapidly as a result of the following factors:
Lower tariffs and handset prices over time;
Growth in pre-paid customer category;
Greater economic growth and continued development of India's economy;
Higher quality mobile networks and services; and
Greater variety and usage of value added services.
Bharti Tele-Ventures, through its subsidiary has the licenses to provide GSM services
in all the twenty-three telecom circles in India. It proposes to consolidate all its
subsidiaries providing mobile services under Bharti Cellular Limited.
As of October 31, 2004, approximately 96% of India's total mobile subscriber market
resided in the Company's nineteen mobile circles, which collectively covered only
56% of India's land mass.
Mobile Footprint
The map below depicts the location of, and provides certain information for, Bharti
Tele-Ventures' existing mobile circles in India:
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Source:
(1) Population estimates are as per National Census, 2001 and are as of March 1,
2001. The population for Uttar Pradesh (West) circle is approximately 37% of the
total population for the state of Uttar Pradesh.
(2) Wireless subscriber statistics are as of Oct 31, 2004 and are based on data released
by COAI. Wireless market size comprises the total number of wireless subscribers of
all the service providers in a circle.
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(3) Demographics of Maharashtra and Tamil Nadu do not include demographics of
state capitals (metros) Mumbai and Chennai respectively.
(4) Demographics of Haryana does not include Faridabad & Gurgaon as they are
included in Delhi & NCR. Similarly demographics of Uttar Pradesh (West) &
Uttaranchal does not include Noida & Ghaziabad as they are included in Delhi NCR.
The significant growth in the Company's mobile business has been through a
combination of organic growth and acquisitions of additional licenses and has been
summarized below. The information given below is for the total market and is not
representative of our market share or network coverage.
1) Comprises the circles of Delhi and Himachal Pradesh.
2) Comprises the circles of Delhi, Himachal Pradesh, Karnataka and Andhra Pradesh.
3) Comprises the circles of Delhi, Himachal Pradesh, Karnataka, Andhra Pradesh and
Chennai.
4) Comprises the sixteen operational circles of Bharti Tele-Ventures.
5) Based on data released by the COAI on the total number of persons subscribing to
mobile services in our licensed areas.
Mobile Strategy
Capture maximum telecommunications revenue potential with minimum
geographical coverage to maximise its revenues and margins.
Build high quality mobile networks by deploying state-of-the-art technology to
offer superior services.
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Use the experience it has gained from operating its existing mobile networks to
develop and operate other mobile networks in India and to share the expertise
across all of its existing and new circles.
Attract and retain high revenue generating customers by providing competitive
tariffs, offering high quality customer support, proactive retention programs
and roaming packages across all of its mobile circles.
Provide affordable tariff plans to suit each segment of the market with a view
to expand the reach, thereby increasing the mobile customer base rapidly.
Introduction
Bharti Telesoft, the telecom and e-commerce venture of Bharti Enterprises , India has
maintained a very close track on technology and new services to help its customers
and partners thrive on change.
Bharti Telesoft is an Indian software company with a clear distinction. As part of
India's largest telecom group, it is uniquely able to harness rich domain experience tothe customer's benefit. Instead of being an IT company providing telecom solutions,
we pride ourselves in being just the opposite!
Bharti Telesoft is fast on the way to attaining a position of leadership in the IT world,
through its clear focus on telecom, backed by rich domain expertise. The company
has one of the best development facilities in the country, and has offices in India,
United States and United Kingdom.
Bharti Healthcare
The corporate ethos of providing the best to our customers carries extra relevance
when it comes to healthcare products. One sector where quality implies the saving of
lives and the promotion of healthy living. Offering quality support to the
pharmaceutical industry, Bharti Healthcare has been engaged in the manufacture of
empty hard Gelatin capsules since 1982.
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Bharti's firm commitment to quality and customer satisfaction is duly
acknowledgement by the list of prestigious clients including Pfizer, Parke Davis,
Wockhardt, Ranbaxy and Glaxo amongst others. Bharti also exports its capsulesto
overseas markets like USA, Hong Kong, Malaysia, Thailand, Indonesia, Sri Lanka,
Iran, Bangladesh, Syria and Cyprus.
The US FDA has recently assigned Drug Master File (DMF) number to BHCL as an
acknowledgement of it's firm commitment to adhere to globally recognized quality
standards in the Pharmaceutical industry. BHCL is also an ISO 9002 certified
company.
ABOUT AIRTEL
Airtel comes to you from Bharti Cellular Limited - a part of the biggest private
integrated telecom conglomerate, Bharti Enterprises.
Bharti Enterprises has been at the forefront of technology and has revolutionized
telecommunications with its world class products and services. Established in 1976,
Bharti has been a pioneering force in the telecom sector with many firsts and
innovations to its credit. Bharti has many joint ventures with world leaders like
Singtel (Singapore Telecom); Warburg Pincus, USA; Telia, Sweden; Asian
infrastructure find, Mauritius; International Finance Corporation, USA and New York
Life International, USA.
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Bharti provides a range of telecom services, which include Cellular, Basic, Internet
and recently introduced National Long Distance. Bharti also manufactures and
exports telephone terminals and cordless phones. Apart from being the largest
manufacturer of telephone instruments in India, it is also the first company to export
its products to the USA.
Bharti is the leading cellular service provider, with a footprint in 15 states covering all
four metros. It has over four million satisfied customers.
So come explore the making of the brand, which touches the lives of 600 million
people across 16 states of India. From the meaning of our logo to downloadable
goodies for your computer, it's all here
BRAND&ADVERTISING:-
For a brand to be successful, it must build enduring relationships with its different
audiences. Integral to this relationship is the visual image of the brand the consumer
carries in his/her mind. The Airtel brand image is created through the consistent
application of a carefully developed visual identity, which helps Airtel distinguish
itself in a cluttered market. Airtel's visual identity helps create instant brand recall and
strengthens the relationships that its audiences have with it.
The Airtel visual identity has different elements that work together to create a strong
and consistent identity for the brand. The most important of these are:
The Airtel logo is a strong, contemporary and confident symbol for a brand that is
always ahead of the rest. It is a specially drawn word mark.
The Airtel Image style 23
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It incorporates two solid, red rectangular forms whose counter form creates an open
doorway.
The Airtel Typographical style
The title case lettering with its capital 'A' was deliberately chosen to reinforce the
brand's leadership position. The red dot on the letterform 'I' cues Airtel's focus on
innovation.. The words 'Express Yourself' are very much part of the brand identity.
The Airtel Colour Palette
The lettering is grey so that the pure black of Airtel is visually unharmed.
DESKTOP DOWNLOADS:-
Here's some cool downloads to liven up your desktop.
Go ahead... Express Yourself.
HISTORY OF CELL PHONES
CELLULAR PHONE
A type of wireless communication that is most familiar to mobile phones
users. It's called 'cellular' because the system uses many base stations to divide a
service area into multiple 'cells'. Cellular calls are transferred from base station to
base station as a user travels from cell to cell.
The basic concept of cellular phones began in 1947, when researchers looked
at crude mobile (car) phones and realized that by using small cells (range of service
area) with frequency reuse they could increase the traffic capacity of mobile phones
substantially. However at that time, the technology to do so was nonexistent.
A cell phone is a type of two-way radio. In 1947, AT&T proposed that the
FCC (Federal Communication Commission) allocate a large number of radio-
spectrum frequencies so that widespread mobile telephone service would becomefeasible and AT&T would have a incentive to research the new technology. But there
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was a gap between the initial concept of cellular service and its availability to the
public. The FCC decided to limit the amount of frequencies available in 1947, the
limits made only twenty-three phone conversations possible simultaneously in the
same service area - not a market incentive for research.
INDIVIDUAL INVENTORS & MOBILE PHONE PATENTS
Radio Telephone System
Inventors: Martin Cooper, Richard W. Dronsuth; Albert J. Mikulski, Charles N.
Lynk Jr., James J. Mikulski, John F. Mitchell, Roy A. Richardson, John H. Sangster
Dr Martin Cooper, a former general manager for the systems division at
Motorola, is considered the inventor of the first modern portable handset. Cooper
made the first call on a portable cell phone in April 1973. He made the call to his
rival, Joel Engel, Bell Labs head of research. Bell Laboratories introduced the idea of
cellular communications in 1947 with the police car technology. However, Motorola
was the first to incorporate the technology into portable device that was designed for
outside of a automobile use. Cooper and his co-inventors are listed above.
By 1977, AT&T and Bell Labs had constructed a prototype cellular system.
A year later, public trials of the new system were started in Chicago with over 2000
trial customers. In 1979, in a separate venture, the first commercial cellular telephonesystem began operation in Tokyo. In 1981, Motorola and American Radio telephone
started a second U.S. cellular radiotelephone system test in the Washington/Baltimore
area. By 1982, the slow-moving FCC finally authorized commercial cellular service
for the USA. A year later, the first American commercial analog cellular service or
AMPS (Advanced Mobile Phone Service) was made available in Chicago by
Ameritech.
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Despite the incredible demand, it took cellular phone service 37 years to
become commercially available in the United States. Consumer demand quickly
outstripped the 1982 system standards. By 1987, cellular telephone subscribers
exceeded one million and the airways were crowded.
Three ways of improving services existed:
One - increase frequencies allocation
Two - split existing cells
Three - improve the technology
The FCC did not want to handout any more bandwidth, and building/splitting
cells would have been expensive and would have added bulk to the network. To
stimulate the growth of new technology, the FCC declared in 1987 that cellular
licensees could employ alternative cellular technologies in the 800 MHz band. The
cellular industry began to research new transmission technology as an alternative.
WIRELESS PCS TECHNOLOGY
PCS (Personal Communication Services): Used to describe a newer class of
wireless communications services recently authorized by the FCC. PCS systems use a
different radio frequency, the 1.9 GHz band, than cellular phones and generally use
all-digital technology for transmission and reception.
After the Federal Communications Commission (FCC) declared in 1987 that
cellular licensees could employ alternative cellular technologies in the 800 MHz band,
the cellular industry began to research new transmission technology as an alternative
to AMPS (Advanced Mobile Phone Service) that had been the industry standard since
1978.
In 1988, the (CTIA) was established to work with the cellular service
operators and researchers to identify new technology requirements and set goals. They
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wanted the new products and services introduced by 1991, a 1000% percent increase
in system capacity with both AMPS (analog) and digital capability during
transmission, and new data features such as fax and messaging services.
The (TIA) created a standard specification based on the requirements the
CTIA had recommended. The TDMA Interim Standard 54 or TDMA IS-54 was
released in early 1991. The technology was tested that same year in Dallas and
Sweden. In 1994, the FCC announced it was allocating spectrum specifically for PCS
technologies at the 1900 MHz band. Three major standards have been released since
1991. All of these new digital wireless standards are currently being used in PCS.
WIRELESS STANDARDS
Analog Service: A method of modulating radio signals so that they can carry
information such as voice or data. Analog cellular phones work like a FM radio. The
receiver and transmitter are tuned to the same frequency, and the voice transmitted is
varied within a small band to create a pattern that the receiver reconstructs, amplifies
and sends to a speaker. The drawback of analog is the limitation on the number of
channels that can be used.
Digital Service: A method of encoding information using a binary code of 0s and 1s.
Most newer wireless phones and networks use digital technology. In digital, the
analog voice signal is converted into binary code and transmitted as a series of on and
off transmissions. One of Digitals drawbacks is that there are three digital wireless
technologies, CDMA, TDMA and GSM. Phones that work with one technology may
not work on another.
Time Division Multiple Access (TDMA) is an update to TDMA IS-54, also
called Digital AMPS or D-AMPS. Released in 1994, TDMA IS-136 uses the
frequency bands available to the wireless network and divides them into time slots
with each phone user having access to one time slot at regular intervals. TDMA IS-
136 exists in North America at both the 800 MHz and 1900 MHz bands.27
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Major US carriers using TDMA are AT&T Wireless Services, Bell South and
Southwestern Bell.
CDMA IS-95 (Code Division Multiple Access) is based on a form of spread spectrum
technology that separates voice signals by assigning them digital codes within the
same broad spectrum. CDMA type technology dates back to the 1940s, when spread
spectrum technology was used in military communications systems because it was
resistant to interference from enemy signals. The corporation began developing a
CDMA wireless system in the late 1980s that was accepted as a standard in 1993 and
went into operation by 1996. CDMA also exists at both the 800 MHz and 1900 MHz
bands. The major US carriers using CDMA are Air Touch, Bell Atlantic/Nynex, GTE,
Primeco and Sprint PCS.
GSM (Global System for Mobile Communications) is based on a improved version of
TDMA technology. In 1982, the Conference of European Posts and
Telecommunications (CEPT) began the process of creating a digital cellular standard
that would allow users to roam from country to country in Europe. By 1987, the GSM
standard was created based on a hybrid of FDMA (analog) and TDMA (digital)
technologies. GSM engineers decided to use wider 200 kHz channels instead of the 30
kHz channels that TDMA used, and instead of having only 3 slots like TDMA, GSM
channels had 8 slots. This allowed for fast bit rates and more natural-sounding voice-
compression algorithms. GSM is currently the only one of the three technologies that
provide data services such as email, fax, internet browsing, and intranet/LAN wirelessaccess, and it's also the only service that permits users to place a call from either
North America or Europe. The GSM standard was accepted in the United States in
1995. GSM-1900 cellular systems have been operating in the US since 1996, with the
first network being in the Washington, D.C. area.
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CELLULAR BACKGROUND
1921
Detroit Michigan Police Dept. made the earliest significant use of Mobile
radio in a vehicle in the United States. The system operated at a frequency close to
2 MHz. The channels soon became overcrowded.
1940
New frequencies between 30 and 40 MHz were made available. Increasing
the available channels encouraged a substantial buildup of police systems. Shortly
thereafter other users found a need for this form of communication. Private
individuals, companies, and public agencies purchased and operated their own
mobile units.
1945
First public mobile telephone system in the U.S. was inaugurated in St.
Louis, Missouri with three channels at 150 MHz. Six channels spaced 60 kHz apart
were allocated for this service by the FCC, but the mobile equipment was not
sophisticated enough to prevent interference.
1947
A Public mobile system using frequencies in the 35 to 44 MHz band began
Operations along the highway between New York and Boston. These frequencies
Were thought to carry greater distances however a problem with skip-distance
Propagation carried interfering conversations for long distances. These early
Mobile telephone systems used push-to-talk operation.
1949
FCC authorized separate radio channels to common carrier entities knownas "Radio Common Carriers" (ROC). These companies do not provide public
telephone service, but interconnect to the public telephone network to provide
mobile telephone services equivalent to the wire line common carriers.
1955
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Number of wire line channels available at 150 MHz was expanded from 5
to 11 by the creation of new channels between the old ones (channel spacing of 30
kHz).
1956
12 wire line channels were added near 450 MHz. All systems operated in a
manual mode, with each call to or from a mobile unit being handled by a special
mobile telephone operator.
1964
A new system (150 MHz) was developed providing automatic channel
selection for each call, eliminated the need to push-to-talk operation, and allowed
customers to do their own dialing.
1969
Automatic capability was extended to the 450 MHz band and the so-called
"Improved Mobile Telephone System" (IMTS) became the standard for mobile
telephone service in the U.S.
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Cellular Telephony
The technology that gives a person the power to communicate anytime,
anywhere - has spawned an entire industry in mobile telecommunication. Mobile
telephones have become an integral part of the growth, success and efficiency of any
business / economy.
The most prevalent wireless standard in the world today, is GSM. The GSM
Association (Global System for Mobile Communications) was instituted in 1987 to
promote and expedite the adoption, development and deployment and evolution of the
GSM standard for digital wireless communications.
The GSM Association was formed as a result of a European Community
agreement on the need to adopt common standards suitable for cross border European
mobile communications. Starting off primarily as a European standard, the Group
Special Mobile as it was then called, soon came to represent the Global System for
Mobile Communications as it achieved the status of a world-wide standard. GSM is
today, the world's leading digital standard accounting for 68.5% of the global digital
wireless market.
The Indian Government when considering the introduction of cellular services
into the country, made a landmark decision to introduce the GSM standard,
leapfrogging obsolescent technologies / standards.
Although cellular licenses were made technology neutral in September 1999,
all the private operators are presently offering only GSM based mobile services. The
new licensees for the 4th cellular licenses that were awarded in July 2001 too, have
opted for GSM technology to offer their mobile services.
Cellular Industry in India
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The Government of India recognizes that the provision of a world-class
telecommunications infrastructure and information is the key to rapid economic and
social development of the country. It is critical not only for the development of the
Information Technology industry, but also has widespread ramifications on the entire
economy of the country. It is also anticipated that going forward, a major part of the
GDP of the country would be contributed by this sector. Accordingly, it is of vital
importance to the country that there be a comprehensive and forward looking
telecommunications policy which creates an enabling framework for development of
this industry.
New Telecom Policy 1999
Telecommunications is now universally recognized as one of the prime
movers of the modern economy; hence it's vital importance for a developing country
like India. The availability of adequate infrastructure facilities is critical for
acceleration of the economic development of any country. In fact international studies
have established that for every 1% increase in tele-density, there is a 3% increase in
the growth of GDP.
Accordingly, the Government of India has accorded the highest priority to
investment and development of the telecommunications sector.
Telecom requires very heavy investment and it was not possible for the Indian
Government to organize public funding of this sector on such a massive scale. In fact
the national telecom Policy 1994, estimated a resource gap of Rs. 23,000 crores to
meet the telecom targets of the eighth five-year plan of the Government of India
(1992-97).
It was for this reason to bridge the resource gap between government funding
and the total projected funds requirement and to provide the additional resources to
achieve the nation's telecom targets that the telecommunications sector was liberalized
in 1992 and the Government invited private sector participation in
telecommunications.
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Cellular mobile services were one of the first areas to be opened up to private
competition. The whole country was divided into the 4 metropolitan cities of and 19
telecom circles, which were roughly analogous with the States of India.
Cellular Licenses were awarded to the private sector - first in the metropolitan
cities of Delhi, Mumbai, Kolkata and Chennai in 1994 and then in the 19-telecom
circles in 1995. The first metro cellular network started operating in August 1995 in
Calcutta. When cellular mobile services were first introduced in 1994 it was as a
duopoly (that is a maximum of two cellular mobile operators could be licensed in
each telecom circle), under a fixed license fee regime and for a license period of 10
years.
The initial response of the private sector was very encouraging. The
attractiveness of the Indian market - the low tele density, the high latent demand and a
burgeoning middle class - brought in some of the largest global telecom players,
foreign institutional investors and the major Indian industrial houses to invest in
telecom, especially the Indian cellular industry.
Telecom proved to be a powerful attractor of foreign investment. The
cumulative FDI inflow into telecom since 1993 has exceeded Rs. 43,000 Million.
Within telecom, the cellular industry has attracted most of the foreign investment
since 1993, accounting for almost 50% of the FDI inflow into telecom - representing
amongst the biggest investments in any one sector in India.
Annual foreign investment in telecom increased steadily from an insignificant
Rs. 20.6 Million in 1993 to Rs. 17,756.4 Million in 1998. However, the attractivenessof the Indian market did not last for very long, as by 1997-98, the private cellular
operators were confronted with a series of problems that threatened their very
viability and survival.
As a result of this, FDI inflow into telecom dropped sharply, declining by
almost 90% to Rs. 2126.7 Million in 1999. This dropped further in Year 2000 - as
until June 2000, only Rs. 918 Million had flown into the country.
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One of the key factors responsible for the critical state of the telecom sector &
consequently also the cellular industry was that liberalization / deregulation was
undertaken in an inverted manner vis--vis international practices and generally
accepted norms. Usually, deregulation is preceded by tariff rebalancing, institution of
a strong and independent regulator and only then is private sector participation
invited.
In India, private sector participation was invited in 1992, the Regulatory
Authority was set up in 1997 and the tariff rebalancing exercise commenced in 1999
and is still far from complete. Further, even when the regulatory authority was set up,
there was considerable ambiguity on its powers, which resulted in virtually each and
every order of the Authority being challenged by the Licensor / incumbent. The
ambiguities in the jurisdiction of TRAI resulted in a limbo in the industry. Another
important factor was the basic approach of the Government towards liberalization.
Consumer benefit was given the go-by and the telecom sector was viewed as a
revenue generator / cash cow for the Government exchequer.
NTP 94 was basically a good policy. It clearly identified that the primary
objective of the policy was to make available affordable telecom services. However,
in actual policy implementation, this key / fundamental objective was disregarded.
Licenses were granted through an auction process and the enthusiastic private sector
deluded by the seemingly huge potential of the Indian market were lured into bidding
exorbitant sums of money for cellular licenses.
The huge license fees paid by the private operators resulted in a high cost
structure leading to un-affordable tariffs and lower growth of the market. By end-
1998, the cellular industry was on the verge of bankruptcy and at that time it appeared
that the liberalization dream was over & the nightmare had begun
It was under the above circumstances that the Government undertook a review
of telecom policy & the role of the regulatory authority. The result was NTP 99,
which was announced in March 1999 & the amendment of the TRAI Act in January
2000.
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NTP 99 is an extremely forward-looking policy. It significantly changed the
dynamics of the Indian telecom industry as it not only replaced the high cost fixed
licensing regime with a lower cost licensing structure through revenue sharing, but
also provides for greater degree of competition and more flexibility in choice of
technologies.
The amendments in the TRAI Act resulted in a considerable strengthening of
the Regulator & greater clarity on its role and powers. It also put in place a separate
dispute settlement mechanism in the form of the Telecom Dispute Settlement and
Appellate Tribunal to expeditiously deal with and resolve issues relating to the
telecom sector.
Existing private cellular operators migrated to the new telecom policy regime
with effect from August 1999. There can be no doubt that migration to a more
beneficial regime translated into tangible consumer benefits - lower tariffs, greater
subscriber uptake & increased coverage.
Cellular tariffs have dropped by over 90% since May 1999 - a feat
unparalleled by any other sector or industry in India. The average airtime tariff in
Year 2001 was prevailing around Rs. 2 per minute as against the peak ceiling tariff of
Rs. 16.80 per minute when NTP 99 was announced.
Parallely, there has also been a significant drop in the cost of mobile handsets.
Cellular handsets that were available for around Rs. 25-30,000 in the initial days of
cellular have now dropped significantly, with a base level handsets being available for
as little as Rs. 2,000 upwards. This has come about as a result of increased volumes
and some degree of rationalization of government levies.
As a result of improved affordability, there an increased take-up of the service
and the cellular operators were able to venture into more and more cities & towns of
the country. In fact cellular services are now available in almost 1400 cities & towns
of India.
With the lower tariffs and increased coverage, there was also a resultant
increase in the number of cellular subscribers. The point of inflexion for subscriber
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take-off is clearly post NTP-99. From 1.2 million subscriber in April 1999, to almost
2 million by April 2000, the number of cellular subscriber have now grown to almost
6.5 million by the end of March 2002.
By March 2001, the industry had invested nearly Rs. 16,000 crores in cellular
infrastructure and it is estimated that these investments will grow to Rs. 20,000 crores
in the next 4-5 years.
The year 2001 also saw the entry of BSNL and MTNL as the third cellular
operators as had been mandated in NTP 99. Further, in July 2001, cellular licenses
were awarded to the 4th cellular operators in different telecom circles. With this the
number of cellular operators has gone up to 89 licenses.
As of March 2002, the Indian cellular mobile industry had 42 networks on air,
serving over 1400 towns and cities and covering thousands of villages and serving
almost 6.5 million subscribers across the country.
The quality of the service is widely accepted to be of international standards
and till date there has been no waiting period involved in availing of this service.
The cellular industry has been growing at an average rate of 85% per annum
and it is hoped that the industry will be able to sustain this growth in the coming
years. The Working Group on the Telecom Sector set up by the Government of India
for the tenth five-year plan, has estimated that over the next five years, around 31.55
million cellular subscribers would be added all over India. To achieve this growth, the
Working Group has also estimated that resources to the tune of about Rs. 25,240
crores will be required over the next five years.
However, to attract foreign investments into India, it is imperative to ensure
the predictability and stability of the policy and regulatory regime of the Country.
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Policy flip-flops & regulatory ambiguity have plagued the Indian telecom sector since
the introduction of privatization. This has had the unhappy result of putting the entire
sector into a state of limbo as investors - both foreign & domestic await clarity on the
final direction that the policy will take. In the meantime, foreign investors, who have
not committed themselves to the Indian market, will divert their interest &
investments to competing and more attractive FDI destinations.
Further, for the industry to attract the requisite investments and to reach the
growth targets set for the tenth five-year plan, it is imperative that a few crucial
industry issues that have been plaguing the industry, be resolved on an urgent footing.
This includes most importantly:
The early resolution of the dispute relating to the recent permission
Granted to fixed operators to offer WLL based mobile services without a
mobile license and under the more advantageous terms of their fixed service
license and
The institution of a formal interconnection agreement between the cellular
operators and the fixed service providers especially the incumbent fixed
service operators - BSNL and MTNL.
CONTRIBUTIONS OF THE CELLULAR INDUSTRY TO THE INDIAN
ECONOMY
1. World Class Infrastructure
The Indian cellular industry has been instrumental in bringing to the Indian
consumer, a world-class telecom infrastructure.
The Indian Cellular Industry is:
The flag-bearer of the Indian liberalization process. 37
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The largest recipient of Foreign Direct Investment (around Rs. 2200 Crores)-A
responsible performing sector that has met all its obligations to the GOI.
The Industry would have invested over Rs. 25,000 crores to:
Set up 69 Networks
Serve over one crore subscribers as of December 2002
Offer Services in over 1575 cities & towns and
Cover over 14,000 villages
2. Reputed Indian Business Houses & International Telecom Majors
The privatization of Indian cellular brought into the arena some of the most
reputed business houses of the country as also biggest names in the international
telecommunications industry. These included:
Reputed Indian Business Houses - Birla, BPL, Escorts, Essar, Reliance, RPG, Tata,
and Thapar.
International Telecom Majors - Singtel, Asia Tech, AT&T, Bell South, Nynex,
Millicom, First Pacific, Hutchison Whampoa, Telecom Italia, New York Life,
Telecom Investments, Telesystem International Wireless, CellaNet and others.
Institutional Investors - AIG, Commonwealth Development Corporation (CDC),
EMP, Asian Infrastructure Fund and others.
3. Increased Connectivity
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There are presently 42 networks operating in the country covering over 1350
cities and towns and directly servicing over 6.7 million subscribers nation-wide.
Importantly, the connectivity benefits also extend to over 33.5 Mn PSTN subscribers
of BSNL & MTNL who can now reach the cellular subscribers " anytime and
anywhere".
In addition the cellular radio waves cover over 28,000 villages, where
connectivity can be provided at a very short notice at a nominal incremental cost.
4. Employment Generation
As the 3rd and 4th Cellular Licensees would start their operations and with 77
networks (42 presently and 35 new networks) on air, the employment generated by
the industry would be promising. In addition to the direct employment generated by
these networks, there is also the multiplier effect of indirect employment generated
down the supply chain comprising vendors, infrastructure suppliers, contractors,
dealers, etc. It is estimated that the total employment generated by the cellular
industry would be in the tune of a few lakhs once the new networks are rolled in.
5. Increased FDI Flows
The Telecom sector is the largest attractor of Foreign Direct Investment in the
country, accounting for almost a fifth of FDI approvals since 1991.
6. Heavy Investment in Infrastructure
The cellular industry is responsible for the single largest chunk of investment
by any individual industry. The industry has already invested over Rs. 20,000 crores
and is expected to invest even more in the years to come.
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The cumulative revenues that have flowed to the Government are already
about Rs. 10,000 crores from license fee and service-tax alone.
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VARIOUS SERVICE PROVIDERS IN INDIA
Aircel LimitedAircel Limited
Aircel Limited is the Cellular Operator in Tamil Nadu Cellular Circle (Tamil Nadu
except Chennai and including Pondicherry).
Promoters:
Aircel Limited is a part of the Sterling InfoTech Group founded by Mr. C.
Sivasankaran.
The Sterling Group has been in operation for over 2 decades and is promoting the
cause of stable business opportunities catering to a need-based society thus
contributing significantly to the quality of life for people across the country.
Tracing its roots back to the early 80s, the Sterling Group revolutionized the then
infantile PC Market with the launch of a series of Siva PCs. The Sterling Group
Companies include Dishnet DSL Limited, one of the leading Internet Service Provider
in the country and the only ISP provider offering Digital subscriber line in the
country. Sterling Agro Products Processing Pvt. Limited, a leading exports of
gherkins and Fresh & Honest Cafe Limited, engaged in export of coffee beans and
distribution of coffee vending machines.
Technology partners:
The Technology partners of Aircel are Ericsson who provide the Mobile Switching
Centers and Base Stations & Fujitsu who provide the MW Backbone. Aircel has a
network of more than 100 exclusive agents across Tamil Nadu.
Launch of services:
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Aircel launched its operations in April 1999.
Aircel Digilink India Limited
Aircel Digilink India Limited, provides cellular services in the circles of Haryana,
Rajasthan and UP (East) under the brand name "Essar".
Promoters:
The Essar Group is one of India's leading business conglomerates, with an asset base
of over US$ 4 billion (Rs. 170 billion). The Group is committed to the development
of core sector and infrastructure businesses in India and abroad. Essar Group is
actively involved in five principal businesses viz., Steel, Shipping, Oil & Gas, Power
and Telecommunications. Each of Essar's businesses has been carefully synergies
with the others to form one single integrated whole.
Technology Partners:
The company uses world-renowned technology from Siemens in building and
operating its North Indian Network. ADIL offers a basket of GSM Phase I and Phase
II features. It offers voice, fax, data and other facilities.
Launch of Services:
Aircel Digilink India Limited (ADIL), was incorporated in March 1995 and was
subsequently inducted into the Essar group in 1996.
UP (East): ADIL launched its UP (East) services in May 1997.
Haryana: ADIL's services in Haryana commenced in June 1997.
Rajasthan: ADIL's services in Rajasthan were started in December 1996.
Pre-paid Services:
The Company launched its pre-paid services under the brand name "Tring"
Bharti Cellular Limited
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Bharti Cellular Limited is the cellular licensee for the Delhi (Metro), Mumbai
(Metro), UP(W), Haryana, Maharashtra, Tamil Nadu, Kerala, MP
The company offers services under the brand name "AirTel".
Technology Partners:
AirTel has been immeasurably strengthened by its partnership with British
Telecom U.K. and Telecom Italia of Italy. AirTel services are in technical alliance
with Ericsson, has provided AirTel subscribers with a truly world class network.
Bharti Mobile Limited
Bharti Mobile Limited offers services in Andhra Pradesh, Karnataka and Punjab
under the brand name "Airtel"
Promoters:
Bharti Mobile Limited, a joint venture of Bharti Enterprises and Telia.
Technology Partners:
Airtel comes to you from Bharti Mobile Ltd. A consortium of giants in the
telecommunication business - British Telecom UK, Tecc3300 Italy, and Bharti
Enterprises India.
The Bharti Enterprises, established in 1976, is today a multifaceted
organisation and a leading group involved in the manufacturing and the services
sector. Its key focus is on the marketing and operations of a comprehensive range of
telecom services in addition to the Healthcare sector.
Launch of Services:
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Karnataka: Airtel launched it's services in Karnataka on May 13,2000. The services in
Punjab started in February 2002.
Airtel is brought by Bharti Enterprises, India's leading telecom conglomerate,
through its company, Bharti Mobile Limited. Bharti Enterprises has revolutionized
Indian telecommunications with its world-class products and services.
Pre-paid Card:
The pre-paid card "Magic" is a nation wide brand.
Bharti Mobinet Limited
Service Area: Chennai (Metro)
Brand Name: Air Tel
Bharti Mobitel Limited
Service Area: Kolkata (Metro)
Brand Name: Air Tel
Bharti Mobitel is the cellular licensee for the Kolkata Metro.
Bharti Enterprises has been at the forefront of technology and has
revolutionized telecommunications with its world-class products and services.
Established in 1976, Bharti has been a pioneering force in the telecom sector withmany firsts and innovations to its credit. Bharti has many joint ventures with world
leaders like Singtel (Singapore Telecom); Warburg Pincus, USA; Telia,
Sweden; Asian infrastructure find, Mauritius; International Finance
Corporation, USA and New York Life International, USA.
Bharti provides a range of telecom services, which include Cellular, Basic,
Internet and recently introduced National Long Distance. Bharti also manufactures
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and exports telephone terminals and cordless phones. Apart from being the largest
manufacturer of telephone instruments in India, it is also the first company to export
its products to the USA.
Pre-paid Services:
The Company operates its pre-paid service under the brand name "Magic".
Bharti Telenet Limited
Service Area : Himachal Pradesh
Brand Name: Air Tel
BPL Cellular Limited
BPL Cellular Limited (BCL) is the licensee to provide cellular mobile services in
the States of Maharashtra (excluding Mumbai but including Goa), Tamil Nadu
(excluding Chennai but including Pondicherry) and Kerala.
The company offers services under the brand name BPL Mobile.
Promoters:
BPL Cellular Ltd. is a joint venture between, BPL, India's No.1 Consumer durable
giant and AT&T Broadband.
Technology Partners:
A reliable and world-class quality network supported by world's leadingtechnology vendors like NOKIA, MOTOROLA and LHS. Reliability ensured through
3700 km. Of Digital Microwave backbone across the 5 states using the latest SDH
technology and sound clarity with EFR technology. The company has in-house
technical expertise in RF planning and initially used the tool Planet, licensed from
Mobile Systems International (MSI), to plan the KR engineering and network design
for each of the circles.
Launch of Services:45
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The company commenced services in January 1997 in Pune, Maharashtra.
Since its first year of operations, the company has been offering a wide range of
products and services.
Prepaid Services:
The company's prepaid service is marketed under the brand name "BPL
Mobile On The Spot" (commonly referred to as 'MOTS').
BPL Mobile Communications
BPL Mobile is the cellular service provider for the metropolitan city of
Mumbai, New Mumbai & Kalyan Telecom Circles and offers services under the
brand of BPL Mobile.
Promoters:
BPL Mobile is a joint venture between the BPL Group and France Telecom.
The BPL Group is widely regarded as a successful, dynamic business house with
more than two decades of successful consumer marketing expertise. It occupies the
top slot in terms of market share in all its areas of operation. The Group has five focus
areas: telecom, consumer electronics, home appliances, components and power. In
telecom, the BPL Telecom Business Group (TBG) has over three decades of expertise
in manufacturing, designing and marketing telecom and IT products and solutions.
Infrastructure Vendors:
Siemens, Motorola and Nokia
Foreign Partners:
France Telecom
Launch of Services:
The Company commercially launched its services on October 2, 1995.
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Pre-paid Services:
BPL Mobile's prepaid services are marketed under the brand name "MOTS" - Mobile
on the Spot.
IDEA Cellular Limited
IDEA Cellular Limited, formally known as Birla Tata AT&T Communication
Limited is the cellular operator in the circles Maharashtra, Gujarat, Andhra Pradesh,
Madhya Pradesh and Delhi (Metro) under the brand name "IDEA".
Technology Partners:
Technologically Birla AT&T Communication Limited has adopted the
superior CME-20 system architecture from Ericsson one of the largest manufacturers
of GSM equipment in the world.
Launch of Services:
The cellular service was launched in the Gujarat circle in January 1997 and in the
Maharashtra Circle (excluding Mumbai, including Goa) in March 1997.
Established in 1947, the Aditya Birla Group is on of the leading business
houses in India. The Group has its presence across various sectors including cement,
viscose staple fiber, engineering, textiles, power, telecommunication, industrial
chemicals, petroleum and financial services.
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AT&T is the largest telecommunication company in the world offering a complete
range of communication services. AT&T started its operations in 1885 and is present
in over 200 countries. In the United States its parent country, AT&T Corp. is a
leading long distance carrier, wireless operator and provider of video data and
Internet services.
Pre-paid card:
The Idea Cellular Pre-paid Card is called as "Idea Chitchat".
Reliance Telecom Limited
Reliance Telecom limited is the Cellular Services Operator in seven circles - Bihar,
Orissa, Madhya Pradesh, Himachal Pradesh, West Bengal, Assam and North-East.
The license area includes 13 states covering more than 35 % of India's landmass and
33 % of India's population.
The company offers its services under the brand name of Reliance Mobile.
Promoters:
Reliance Telecom limited has been promoted by India's largest private sector
company, Reliance Industries limited with minority equity participation by BellAtlantic - Nynex Inc.
Reliance Telecom's major coverage lies in the eastern region of the country,
where there is an opportunity to supplement the existing fixed line network which has
remained underdeveloped due to historical reasons. Reliance Telecom has been
successful in a short span of time in setting up network and providing cellular services
across seven Circles.
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Technology Partners:
The MSCs for Reliance Mobile have been supplied by Ericsson, BSC/ BTS by
Motorola and the Billing System by Siemens Nixdorf. Reliance Telecom Limited
offers services such as post-paid service, prepaid card, voice mail, roaming and inter -
city cellular service. With networks covering six contiguous circles in Central and
Eastern India.
RPG Cellular Services Limited
RPG Cellular is the cellular licensee for the Chennai Metro and operates under the
brand name "RPG Cellular".
Promoters:
The RPG Group has promoted RPG Cellular Services Ltd (RCSL) in association with
two of the largest GSM cellular operators in the world - AirTouch Communications
Inc., U.S.A. and Vodafone Group Plc., U.K.
AirTouch is one of the world's largest wireless communication companies with
global interests in cellular, paging and personal communications services. The
Company is the largest cellular service operator in the world with over 17 million
subscribers.
Vodafone is a leading global provider of mobile telecommunications services in U.K.
and Australia and several other countries across Europe and Asia and has over 10million customers worldwide. The Company also has participation in the Global star
Satellite Communication System.
Infrastructure vendors:
Ericsson is the infrastructure vendor of the company.
Launch of Services:
The Company commenced commercial operations in October 20, 1995.49
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Pre-paid Services:
Its prepaid service - "Wings Prepaid" was launched in October 1998.Spice
Communications Limited
Spice Communications Limited is presently operating Cellular Phone Services in
the states of Punjab and Karnataka.
Promoters
Spice Communications is a 51:49 joint venture between Spicecorp (India)- the
flagship company of Dr. B.K. Modi group that first introduced India to mobile phone
services and has interests in the field of telecommunications, office automation and
information technology and DISTACOM (Hong Kong)-a company with over 20 yearsof experience in mobile communication which was responsible for bringing mobile
telephony to Hong Kong along with Hutchison Telecom.
Foreign Partners
The Foreign partners for Spice Communications Karnataka are Distyacom, AIG and
Prudential.
Infrastructure Vendors
The infrastructure vendors are Siemens and Motorola.
Launch of Service
Launched over four years ago under the memorable brand name of "Spice", the
Company offers cellular services in Punjab and Karnataka. Spice Karnataka launched
its services in April 1997.
Pre-paid Service
The pre-paid service in Karnataka operates under the brand name "Simple"
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Chapter III
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SALES PROMOTIONAL ACTIVITIES
Promotion is true that products are manufactured to satisfy the needs of the
consumers.. But alone is not enough. Today the responsibility of the manufacturers
does not cease with physical production whatever may be the nature of the product.
The present day marketers are consumer oriented where it is the duty of the
manufacturers to know from where, when, how and what price the products would be
available. Successful marketing consists in offering the right product of the right price
of the right place (and time) with right promotion.
In course of time, various activities came into vogue designed particularly to help
easy sale of goods. These activities commonly known as promotional Mix. The
marketing communication Mix also called as the Promotion Mix consists of four
major tools.
5. Advertising.
6. Sales Promotion
7. Publicity
8. Personal Selling
MARKETING COMMUNICATION PROCESS:
Generally marketing communication is undertaken to pass on the message of a
product or sale to the ultimate consumers. Thus, there are three elements in this
process.
IMPORTANCE OF ADVERTISING:
The purpose of advertising is motivating but to sell something a product, a
service or an AIRTEL. The real objective of advertising is effective communication
between producers and consumers. In other words the ultimate purpose all advertising
is Increased awareness list of the following specific objectives of advertising.
To make on immediate AIRTEL
To build primary demand
To introduce a price deal
To inform about a products availability 52
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To increase market share
To help salesman by building on awareness of a product among retailers
To increase the frequency use of a product.
To build overall company image
To build brand recognition
PERSONAL SELLING
The process of selling is ensured by personal selling supposed
by advertising and sales promotion. Of these three methods personal selling occupies
the predominant role mainly because of the personal element involves. It may be
described as a personal source rendered to the community in connection with
marketing of goods. It is a marketing process with which consumers are personally
persuaded to by goods and services offered by a manufacturer. The most powerful
element in the promotional mix is salesman ship, is not something very new. Even
centuraries ago salesman ship was practiced in Greece and Rome. According to Peter
Drucker Cyrus Mecornie was the first man to use modern technique of selling.
Features:
1. It helps to establish a cordial and obiding relationship between the
organization and its customers.
2. It is a creative art. It creats wants a new.
3. It is a science, in the sense that One human mind influences another human
mind.
4. Personal selling imparts knowledge and technical assistance to the consumers.
SALES PROMOTION
Promotion includes all those functions, which have to do with the marketing of
a product all other activities designed to increase and expand the market. But it is
clearly distinguished from advertising and personal selling, through basic aim or all
the three is one and the same viz., to increase the volume of sales.
Sales Promotion :
Contests, Games
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Sweep stakes, Lotteries
Premiums
Sampling
Fairs and Trade shows
Exhibs
Demonstrators
Couponing
Rebates
Low interest Financing
Entertainment Trade in allowances
Trade stamps
Sales promotion in a specific sense, refers to those sales activities that
supplement both personal selling and advertising and co-ordinationate them and help
to make them effective, such as displays, shows and expositions, demonstrations and
other non recurrent selling efforts not in the ordinary routine.
In a general sense the sales promotion includes personal selling, advertising
and supplementary selling activities.
Evaluation of Sales Promotion:
Two decades ago, there was no agreement among the marketing people that
there was a separate sales promotion function. In those days, promotion was a share-
run to gain a short run good. The importance of sales promotion is modern marketinghas increased mainly an account of its ability in promoting sales and preparing the
ground for future expansion. The main objective of sales promotion is to attract the
prospective buyer towards the product.
PUBLICITY
The publicity is derived as Any form of commercially significant news about
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paid for by the sponsor. In short advertisement is paid form of publicity. It is to be
noted here that though the terms ADVERTISING AND Publicity or differences
in the field of marketing, both are used interchangeably.
The media are broadly classified into direct indirect. Direct method of
advertising refers to such methods used by the advertiser with which he could
established a direct contact with the prospects. Most of the media are indirect in nature
EX: Free Publicity, cinema, etc.
Press Publicity :
This remains the most popular method of publicity to day. News papers and
magazines have become a part of cultural and political life of the people. Now press
publicity takes two forms.
(a) News Papers
(b) Magazines
(a) New papers :
The abbreviation for news papers is North. East, West, South past and present event
report. News papers are bought largely for their news value. As such they are
appropriate for announcing new products and new development of existing products.
Because of their frequency of publication, they are also well suited to opportunity
makers, the various advantages may be summed up as follows :
They reach nook and corner, so their coverage is high.
High frequency enables speedy preparation and publcation of advertisement.
News papers offer a lot of flexibility. According to the convenience and
necessity of the advertises the shape and size of advertisement could be
changed.
Advertising in news papers is a cheap method of advertising from the
company point of view.
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The news papers advertising sponsor four kinds of advertising
Classified advertisement EX : House for sale etc.,
General advertisement
Teaser advertisement
News type advertisement
(b) Magazines :
Another media under press publicity is magazines, and journals. They also offer
good facility because magazines are read leisurely when the reader mentally prepared
to receive the advertisement.
Magazines are periodicals (periodicals of publication is regular) but different from
news papers in two respects. One is that it pre-selects, its readership through the
nature its content: as mentioned above they are read leisurely magazines, as a group
may be subdivided from the point of view of advertisers as follows:
Kinds of out-door publicity:Rural Advertising:
It refers to posters which are often posted on walls. The size of such poster
would be big and might contain pictures etc. It is often found in cinema advertising.
Advertisement boards :
These advertisement or posters but are kept at certain fixed places especially at
points. Where people frequently assemble bus stages, railway stations etc., and Big
hoardings will be placed at various road sides with various offers using stars such as
Sachin Ramesh Tendulkar and Sharuk Khan who are the Brand Ambassadors for
Airtel with various adds.
Vehicular Advertising :
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This refers to moving advertisements. These advertisements on moving
vehicle such as buses and railway trains offer examples of this. This type of
advertising has such a very large circulation and is considered to be very effective.
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Chapter IV
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ANALYSISANALYSIS
THE TYPES OF CONSUMERS OF PURCHASE OF AIRTEL
According to my survey, it can be seen from the above table that indicates
Employees 15 (30%), Business Personnel 26 (52%), Profession 3 (6%) and Students 6
(12%), are preferring to purchase AIRTEL.
BAR GRAPH REPRESENTING THE TYPES OF CONSUMERS OF
PURCHASE OF AIRTEL
FACTORS NO.OF RESPONDENTS PERCENTAGE
EMPLOYEES 15 30%
BUSINESS PERSONNEL 26 52%
PROFESSION 3 6%
STUDENTS 6 12%
TOTAL 50 100%
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Influencing factors to purchase of AIRTEL
As per my survey, the above table reflects that Friends 11 (22%),
Advertisements 10 (20%), Goodwill/Fame 14 (28%), Personal Choice 15 (30%) are
the factors influencing to purchase of AIRTEL.
Blue Pie Graph representing influencing factors to purchase of AIRTEL
FACTORS NO.OF RESPONDENTS PERCENTAGE
FRIENDS 11 22%
ADVERTISEMENTS 10 20%
GOODWILL/FAME 14 28%
PERSONAL CHOICE 15 30%
TOTAL 50 100%
60
15
30%
26
52%
3
6%
6
12%
0
5
10
15
20
25
30
Employees Business Profession Students
NO.OF RESPONDENTS PERCENTAGE
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NO.OF RESPONDENTS
11
10
14
15
FRIENDS ADVERTISEMENTS GOODWILL/FAME PERSONAL CHOICE
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The following table indicates the level of satisfaction of consumers towards
the purchase of AIRTEL.
PIE EXPLOSION GRAPH REPRESENTING THE LEVEL OF
SATISFACTION OF CONSUMERS IN VIEW OF PRICE
5
2019
6
10% 40% 38% 12%0
5
10
15
20
25
VERY GOOD GOOD AVERAGE SATISFACTORY
NO.OF RESPONDENTS PERCENTAGE
ATTRIBUTESNO.OF
RESPONDENTSPERCENTAGE
VERY GOOD 5 10%
GOOD 20 40%
AVERAGE 19 38%
SATISFACTORY 6 12%
TOTAL 50 100%
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The following table indicates the level of satisfaction of consumers towards
the purchase of AIRTEL.
Attributes No. of Respondents Percentage
Very Good 10 20%
Good 21 42%
Average 16 32%
Not Satisfied 3 6%
Total 50 100%
THE FLOATING GRAPH REPRESENTING SERVICES OF AIRTEL TO
THE CONSUMERS
10
21
16
332% 6%42%20%
0
5
10
15
20
25
Very Good Good Average Not Satisfied
No. of Respondents Percentage
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Type of Promotional Activity towards To Purchasing Airtel
As per my survey, the above table reflects that advertisements 11 (22%),
publicity 10 (20%), sales promotion 14 (28%), word of mouth 15 (30%) are the
factors influencing to purchase of AIRTEL.
Blue Pie Graph representing influencing factors to purchase of AIRTEL
FACTORS NO.OF RESPONDENTS PERCENTAGE
Advertisement 11 22%
Publicity 10 20%
Sales Promotion 14 28%
Word of Mouth 15 30%
TOTAL 50 100%
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NO.OF RESPONDENTS
11
10
14
15
The Connection that Most Prefer By Advertisements
Attributes No. of Respondents Percentage
Reliance 9 18%
Airtel 21 42%
Idea 10 20%
Vodafone 10 20%
Total 50 100%
THE FLOATING GRAPH REPRESENTING THE CONNECTION THAT MOST
PREFER BY ADVERTISEMENTS
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PREPAID & POSTPAID CONNECTIONS OF AIRTEL
According to my survey, it can be seen from the above table that indicates
PREPAID 35 (70%), POSTPAID 15 (30%), prefer to purchase AIRTEL.
BAR GRAPH REPRESENTING PREPAID & POSTPAID CONNECTIONS OF
AIRTEL9
18%
21
42%
10
20%
10
20%
0
5
10
15
20
25
Reliance Airtel Idea Vodafone
FACTORS NO.OF RESPONDENTS PERCENTAGE
PREPAID 35 70%
POSTPAID 15 30%
TOTAL 50 100%
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SWOT ANALYSIS
STRENGTH
AIRTEL - CONCEPT, ATHOUGHT, A NOTION. AIRTEL IS ABOUT
SIMPLE THOUGHTS THAT HAVE THE POWER TO ENHANCE LIFE
The AIRTEL chitchat is rechargeable SIM card easily available acro